July 30th 2024.
A popular American burger chain that was planning to expand to Australia has recently gone into voluntary administration. The news broke late yesterday when KPMG announced that they had appointed administrators for CJ's Group, the master licensee for Carl's Jr in Australia. This chain, which has been operating in numerous countries around the world, opened its first store in Australia in 2016.
In Australia, CJ's Group manages 24 Carl's Jr restaurants, all based in Victoria. They also serve as the master licensee for 25 other independently-owned Carl's Jr restaurants, which are operated by third-party sub-licensees. KPMG has assured that these remaining 25 restaurants will not be affected by the recent development. They will instead be transitioned to a direct licensed relationship with CKE Restaurants Holdings, Inc, the parent company of Carl's Jr.
Fortunately, all 24 restaurants in Queensland will remain open and remain unaffected by the administration. A spokesperson for the Queensland group of franchises stated that it will be "business as usual" for these restaurants and that all 450 staff will retain their jobs. This is a relief for both employees and customers, as the chain's global outlets will also remain unaffected.
However, there will be changes for the remaining 20 outlets operated by CJ's Group. KPMG has announced that these stores will be closed immediately, while the other four will continue to operate as usual. As administrators, their main focus will be on stabilizing the operations of CJ's Group. They plan to conduct a sale process for the existing stores and operations and will work with all stakeholders to ensure the best outcome for everyone involved.
Creditors, suppliers, customers, and landlords will be contacted in the coming days, and a meeting of creditors is scheduled for August 7, 2024. This news comes at a time when the Australian hospitality industry is already under immense pressure due to the rising cost of living. According to CreditorWatch, one in eleven hospitality businesses are predicted to fail in the next 12 months, which is well above the average failure rate for businesses.
On CJ Group's website, they had set a goal of opening over 200 Carl's Jr outlets in Australia within the next decade, creating more than 10,000 jobs. However, with the current financial situation, their plans may change. The website also stated that there were franchise opportunities available in various Australian states. This announcement of voluntary administration has raised speculation about the future of these opportunities.
In the midst of all this news, Wide World of Sports has launched an Olympic hub where fans can catch up on all the latest stories related to the Paris 2024 Games. With the event being broadcast live and free on Channel 9 and 9Now, as well as ad-free and in 4K on Stan Sport, it's sure to be an exciting event for all to watch.
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